Hot Research PM

RCN's Broadband Has Narrow Prospects

The provider of video, voice and data services is putting its books in order, but has already hit a "full valuation limit," says UBS.

Updated May 1, 2006 11:59 p.m. ET

RCN (RCNI: Nasdaq) By UBS Securities ($26.61; May 1, 2006)

WE ARE INITIATING COVERAGE of RCN with a Neutral rating and $29 price target.

We believe RCN operates in a highly competitive environment for video, voice and data services. While the attractiveness of the business, including recent capital-structure improvements, significant...